EPCG machinery

[Mithilesh Kumar]

Dear sir,

We have import machineries under EPCG in 2011-2012 with 3.08 % of custom duty.

These machineries were using as per agreement taken during EPCG license.

Please advise can we use these machinery for rental business now.

[YAGAY andSUN]

Till the time you don't fulfill the export obligation and submit the EODC, you cannot use machinery imported under EPCG Scheme.

[Mahir S]

Sir,

Import of capital goods shall be subject to Actual User condition till export obligation is completed.

AI Summary

Actual User condition restricts use of EPCG imported machinery until export obligation is discharged and EODC submitted. Machinery imported under the EPCG Scheme cannot be used commercially, including for rental business, until the exporter fulfills the export obligation and submits the EODC; imports are subject to the Actual User condition which restricts transfer or change of use prior to discharge of the obligation.